Shares in Moonpig (LON:MOON) trotted to a 52-week high after the online greeting cards and gifting platform posted solid growth in FY26 sales and profits. Investors also applauded an 11.2% increase in free cash flow to £73.5 million for the year to April 2026. This supported a 25% increase in the total dividend to 3.75p.
Moonpig completed £60 million of share buybacks in FY26. And the company plans to buy back up to £65 million of shares during FY27, demonstrating confidence in its data-led model and growth prospects.
A strong core
Moonpig provides online greeting cards, gifts and experiences. It trades as Moonpig, Red Letter Days and Buyagift in the UK and as Greetz in the Netherlands.
Adjusted pre-tax profits perked up 13.4% to £76.5 million on a 6.5% revenue rise to £373 million in FY26. Growth was led by the core Moonpig brand, where revenue rose 8.6%, while Greetz generated constant currency growth of 1.5%.
The number of active customers across the two brands increased from 12 million to 12.3 million year-on-year. Moonpig attributed a 5.7% hike in average order value to customers trading up to pricier gifts including new ranges from Next (LON:NXT) and Boots. Also at play were larger card formats and a migration to tracked UK delivery.
There is still work to do in turning round the Experiences business, where revenue decreased by 4.5% year-on-year. However, the rate of revenue decline moderated from 8.9% in H1 to 1.9% in H2 as Moonpig made progress in building ‘a broader and more relevant product range’.
Powerful foundation
New CEO Catherine Faiers said: ‘At its heart, Moonpig helps people to build and maintain meaningful relationships and in an increasingly digital world, that role feels more relevant than ever.
‘What excites me most is the combination of trusted brands, rich proprietary customer data and differentiated operational capabilities that have been built over many years. Together they give us a more powerful foundation to deepen customer relationships, unlock more value across the group and deliver attractive returns for shareholders over the long term.’
Moonpig shares are down 45% on a five-year view and remain moored below their 2021 IPO price of 350p. This weakness reflects the unwinding of a pandemic boost, as well as concerns over competition and frail consumer confidence.
And yet Moonpig continues to exhibit resilience and put up strong numbers despite a tough consumer backdrop. The company commands dominant positions in the UK and Netherlands online card markets and continues to generate growth and cash.
Data assets are the key source of Moonpig’s competitive advantage. These assets enable Moonpig to engage customers with reminders throughout the year and should continue to drive its future growth.
Read the press release here: https://www.moonpig.group/investors/
